Former Olympus Execs Arrested

Four months after the Olympus accounting scandal broke, it's taken a criminal turn. Police arrested seven men, including the former president and vice president of Olympus Corp. and several former bankers. The men are suspected of helping hide huge investment losses in an attempt to postpone the fallout from risky investments made during the 1980s bubble economy. In October, then-CEO Michael Woodford exposed the rampant fraud by asking about the suspicious mergers and acquisitions deals used to hide the losses. The questions prompted him to get fired. Olympus is suing 19 executives over the fraud and cover-up.